Posted by ScottS on January 08, 2003 at 14:06:09:
Opps, I may have misread the site. They said 50%, After reading it again they may be meaning the 50% is for the individual’s tax as oppossed to the corps tax and the individual’s tax being 100%.
ScottS
Corporation Now the Preferred Tax Payong Entity? - Posted by Brad_GA
Posted by Brad_GA on January 07, 2003 at 19:15:44:
If dividends are eliminated on corporations, will corporations become the preferred tax paying entity for real estate?
I mean the accumulated earnings tax would be meaningless and what effect would it have on the Personal holding corporation tax? I just wonder how all of this would shake out?
I mean, all we would have to is look at the marginal tax bracket of the personal tax return and compare that with the corporations to determine which entity would be the lowest and the corporation would probably win out?
Whats your thoughts on this?
Brad
Re: Corporation Now the Preferred Entity? - Posted by JHyre in Ohio
Posted by JHyre in Ohio on January 08, 2003 at 07:26:34:
It would sure make them attractive. The devil’s in the details…this sort of transition would require A LOT of technical drafting by Congress and the Treasury…the details could take years to shake out. A big factor: The perceived permanency of the changes. If the Democrats pull a double-cross and start taxing dividends once you have a “C” full of rentals, the results could be disastrous.
John Hyre
Re: Corporation Now the Preferred Entity? - Posted by ScottS
Posted by ScottS on January 08, 2003 at 12:54:47:
The main problem I see is, according to msn’s website, only 50% of the income is being excused from taxes. So no matter what you’d be paying taxers on 50% of what you take as dividend income.
Like you say, the details are what will spell out if it’s any good. But I am still thinking no dividend distributions and many fringe bene’s.
ScottS